FINANCIAL REVIEW FY2024 (US$’000) FY2023 (US$’000) Change (%) Gross revenue 167,582 208,025 (19.4) Property operating expenses (87,708) (93,419) (6.1) Net property income 79,874 114,606 (30.3) Interest income 3,277 617 >100 Manager’s base fee (4,251) (7,833) (45.7) Trustee’s fee (226) (267) (15.4) Other trust expenses (2,546) (2,970) (14.3) Finance expenses (48,099) (46,020) 4.5 Net income before tax and fair value changes 28,029 58,133 (51.8) Net fair value change in derivatives (16,577) (15,653) 5.9 Net fair value change in investment properties (187,936) (438,561) (57.1) Loss on disposal of investment properties (1,618) (908) 78.2 Net loss before tax (178,102) (396,989) (55.1) Tax income 99 17,026 (99.4) Net loss (178,003) (379,963) (53.2) Income available for distribution to Unitholders 38,260 74,292 (48.5) Adjusted income available for distribution to Unitholders¹ 38,260 67,991 (43.7) Adjusted income available for distribution to Unitholders per Unit² (US cents) 2.15 3.83 (43.9) FY2024 FY2023 Total operating expenses3 (US$’000) 94,660 104,502 Net assets4 (US$’000) 430,632 608,635 Total operating expenses as percentage of net asset value as at the end of the financial year (%) 22.0 17.2 NET PROPERTY INCOME Gross revenue for FY2024 decreased 19.4% from FY2023, mainly due to divestment of Tanasbourne in April 2023, Park Place in December 2023 and Capitol in October 2024, absence of the lease termination income of US$9.0 million from a tenant at Exchange, as well as lower rental and recoveries income resulting from higher portfolio vacancy rate, particularly at Figueroa, Centerpointe, Exchange and Plaza. Excluding the impact of the lease termination income at Exchange and divestments, gross revenue decreased by US$17.8 million or 10.5%. Property operating expenses for FY2024 decreased 6.1% from FY2023, mainly due to the divestment of Tanasbourne, Park Place and Capitol, in addition to lower property taxes and repair and maintenance expenses. This was partially offset by higher insurance premiums and non-cash amortisation of leasing commission. As a result, the net property income for FY2024 was US$79.9 million, a decrease of 30.3% from FY2023. 1 To provide a like-for-like comparison, income available for distribution to Unitholders for FY2023 has been adjusted to reflect 1H2023 Manager’s base fee of US$3.8 million and property management fee of US$2.5 million being payable in cash instead of Units. 2 Computed based on adjusted income available for distribution to Unitholders divided by the total number of Units in issue. 3 Refers to all operating expenses (including fees, charges and reimbursable costs paid/payable to the Manager and interested parties), excluding net foreign exchange gains or losses and finance expenses. 4 Net assets as at 31 December 2024 and 31 December 2023, respectively. 22 | MANULIFE US REIT
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